Steel Mills
September 28, 2020
Cleveland-Cliffs to Acquire ArcelorMittal USA
Written by Sandy Williams
Cleveland-Cliffs is about to become the largest flat-rolled steel producer in North America. The company announced Monday that it will acquire the operations of ArcelorMittal USA and its subsidiaries for a purchase price of approximately $1.4 billion in equity and cash.
The transaction includes 78.2 million shares of Cleveland-Cliffs common stock valued at $500 million, which will give ArcelorMittal a 16 percent share in the company. Also included is $373 million of non-voting preferred stock and $505 million in cash. Cliffs will assume approximately $500 million in net liabilities as well as $1.5 billion in pension and retirement benefits. The total transaction value is estimated at $3.3 billion.
